Recent volatility in the cryptocurrency market, triggered by global trade tensions between the US and other countries, has led to increased demand for stablecoins. Data from IntoTheBlock indicates that daily active addresses on the stablecoin network surged past 300,000, with on-chain volume reaching $72 billion. This surge represents a significant increase since February 2025, highlighting the appeal of stablecoins in times of market uncertainty. This is not surprising given the substantial price drop across the crypto sector, driven primarily by Bitcoin’s decline from $81,000 to around $74,000. While initial volatility was triggered by fake news about US tariffs being suspended for 90 days, it ultimately caused a market shake-up. The resulting instability led to over $200 million in liquidations within an hour as investors adjusted their positions. Despite this volatile week, the crypto market still experienced a 1.38% decline in its total market capitalization, with Bitcoin currently trading at $77,000. Market sentiment remains bearish due to ongoing trade war tensions and potential recession concerns expressed by prominent figures in finance. The fear is evident as per the CoinMarketCap Fear and Greed Index, which currently sits at 19/100. This volatility has impacted traditional financial sectors as well, with billionaire investor Bill Ackman expressing concerns about the US’s trade strategies, while BlackRock CEO Larry Fink has hinted at a potential US recession. Despite the challenges faced by the crypto market, stablecoins continue to grow rapidly. The total circulating supply of stablecoins has reached approximately $234 billion, signifying a 13% growth year-to-date, largely due to an increase in Circle USDC and Tether USDT supply. This trend is expected to continue as new entrants join the market. Notably, the Trump-backed DeFi project World Liberty Financial (WLFI) is launching its own USD-pegged stablecoin and plans to distribute it through airdrop to WLFI token holders. Regulatory efforts worldwide are also underway to create legal frameworks for stablecoins, which many believe will contribute to their stability and widespread adoption. Kenya recently proposed a bill to regulate stablecoins and the crypto sector, giving the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) regulatory power over the industry. The US and UK are also actively pursuing regulations on stablecoin activity. However, Tether CEO Paolo Ardoino believes that any regulation affecting his stablecoin would not significantly impede operations. He proposes creating a US-based stablecoin to comply with applicable laws. Despite challenges posed by market volatility, the growing demand for stablecoins highlights their resilience and potential as a key player in the future of finance.